Following the company's disclosure of a dismal sales projection for fiscal 2025 and a significant drop in its dividend, Kohl's (KSS, Financials) shares fell 24.1% on Tuesday and closed at $9.15.

Operating cash flow for the quarter was $596 million; for the year overall it was $648 million; adjusted net income came in at $106 million, or $0.95 per share.

Claiming the need of conserving money and focusing on debt reduction, Kohl slashed its quarterly dividend to $0.125 per share in a cost-cutting measure. Generating a $76 million one-time loss, the company is closing one e-commerce fulfillment facility and 27 underperforming sites.

CEO Ashley Buchanan outlined Kohl's turn-around plan, stressing private brands like Sonoma and Flex, simplifying store layouts, and refining marketing strategies to improve customer experience. Management forecasts earnings per share between $0.10 and $0.60, and net revenues will fall between 5% and 7% in fiscal 2025. Operating margins ranging between 2.2% and 2.6% are expected by the company as gross margins from inventory management and exclusive brand development rise by 30 to 50 basis points.

Analysts remaining dubious of Kohl's performance have questions about consumer spending pressures, client retention, and the company's poor e-commerce results. Though the Q4 results presentation revealed a shift from a defensive posture in Q3 to a more aggressive one, questions remain surrounding the timing and efficacy of the turnabout strategy.

Management stressed concentrated marketing, omnichannel expansion, and strategic retail modifications to rebuild trust and boost profitability while acknowledging past errors in product selections and marketing techniques. Macroeconomic problems have the company projecting lower end of results for Q1 2025.